A Bond Has a Face Value of $10,000; a Coupon

question 17

Multiple Choice

A bond has a face value of $10,000; a coupon rate of interest of 5%; and an annual interest payment of $500. The bond matures on January 20, 2035. Yesterday the bond sold for $9,300 in the secondary bond market. What is the current yield on the bond?

• A) 7.52%
• B) 7.00%
• C) 5.37%
• D) -7.00%

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Definitions:

Sims' Position

A body position used in medical examinations where the patient lies on their left side with right knee bent toward the chest, often used for rectal exams.

Upper Thigh Flexed

A position or movement where the muscles of the upper leg are contracted, drawing the leg closer to the body.

Differential Diagnosis

The process of determining the correct diagnosis when two or more diagnoses are possible.

Lithotomy

A medical procedure or position used during childbirth or certain surgeries, where the patient lies on their back with the hips and knees flexed and the thighs apart.